American Politicians To Raise Funds Through Crypto Mining If FEC Introduces A New LawOctober 3, 2018
The American political system is becoming one of the major beneficiaries of Cryptocurrencies and Blockchain technology if the latest developments are anything to go by. The U.S. Federal Election Committee (FEC) is planning to introduce a law that will allow supporters of a political group to mine altcoins using their computing power to support their candidates. Osia Network, LLC, is pushing the request. The move is expected to make it easy for political parties and their candidates to raise funds during campaigns.
A Little Known Company Recommends A New Funding Method
Osia Network, LLC has written to the U.S. Federal Election Committee (FEC) requesting them to allow supporters of political parties to mine Cryptocurrencies using their computing power to support their candidates or causes. The Delaware based little-known company is making a request that is expected to have major implications on altcoins and politics in the world’s largest economy.
The company has written to FEC proposing to embed virtual currency mining tools on its website. The people will be free to determine how much of their computing power they wish to give. The money raised will then be given to specific candidates that the volunteers support. OsiaNetwork would then be paid for providing the service.
Incorporating Blockchain Technology In Politics
Recently, Blockchain technology has gained various areas of application especially in the creation of altcoins. Nevertheless, the technology has not yet gained much application in politics. In 2014, FEC allowed political committees to receive Bitcoin donations and set the maximum donation of $100.
Given that Cryptocurrencies have become so popular because they allow the anonymous transaction, FEC introduced some conditions when making Cryptocurrency donations. Crypto donors have to submit personal details such as their names, contacts, job, and even employer. This was done to control the use of ‘dirty money’ to influence politics. Various states have discussed the issue with Colorado accepting the use of the virtual currencies for political donations.
New Challenges Ahead
Although the new law will be great news to the Crypto industry, it will require a change in political party funding. This is because this is the first request of its kind hence the need to ensure the right laws are put in place. Moreover, there are fears that the move will enable more Crypto firms to take part in the American politics.
The introduction of the new law will make it easy for political parties and their candidates to raise more funds from their supporters. This is because the use of the virtual currencies makes it easy for people to contribute even when they are abroad as long as they are Americans. Moreover, the transactions costs are low thereby encouraging more people to participate.
This comes at a time when political campaigns have become very expensive. Candidates have to spend millions to campaign when seeking public offices. Whereas the 2016 Presidential Election spent around $6 billion, it is hard to tell how much will be used in the next election. Whether the introduction of the new funding method will lead to an increase in the cost of campaigns is hard to tell at this time.